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LAWS
OF THE
STATE OF DELAWARE
ONE HUNDRED AND THIRTY- FOURTH
GENERAL ASSEMBLY
FIRST SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 13, A. D.
1987
SECOND SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 12, A. D.
1988
VOLUME LXVI

LAWS
OF THE
STATE OF DELAWARE
ONE HUNDRED AND THIRTY-FOURTH
GENERAL ASSEMBLY
FIRST SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 13, A.D.
1987
SECOND SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 12, A.D.
1988
VOLUME LXVI
CHANER 1
FORMERLY
SENATE BILL NO. 8
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 21, TITLE 24 OF THE DELAWARE CODE, RELATING TO THE BOARD OF
EXAMINERS IN OPTOMETRY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of the
members of each house thereof concurring therein):
Section 1. Amend Chapter 21, Title 24 of the Delaware Code, by striking said Chapter
in its entirety and by substituting in lieu thereof the following:
"CHAPTER 21. OPTOMETRY
§2101. Definition of Practice of Optometry
(a) The practice of optometry for the purpose of this chapter is defined to be:
The diagnosis and/or the examination of the human eye and its appendages:
and/or
The employment of any objective or subjective means or methods for the
purpose of determining the refractive powers of the human eye and/or any visual,
muscular or anatomical anomalies of the human eyes and their appendages, or any
ocular deficiency; and/or
The prescribing and/or application of lenses, prisms, contact lenses,
orthoptics (visual training), or any physical, mechanical or psycho-visual therapy
for the correction, remedy or relief of any insufficiencies or abnormal conditions
of the human eyes and their appendages.
(b) Any person shall also be deemed to be practicing the profession of optometry
who:
Holds himself out as being able to do so; or
Opens for practice or operates, conducts or manages an office in this
State, either directly or indirectly, where optometric practice is carried on with
the intent of receiving therefrom, either directly or indirectly, any money, gift
or any form of compensation which might result from any part of the practice of
optometry as defined in this section; or
Uses the title of Doctor of Optometry (0.D.), or any other letters or
title in connection with his name, which in any way may convey the impression that
he is engaged in t`le practice of optometry.
(c) For purposes of disability insurance, workmen's compensation, standard health
and accident, sickness and other insurance policies, programs and plans, if the
optometrist is authorized by law to perform the particular services, he shall be
entitled to compensation for his services under the said programs. Individuals
entitled to such services shall have freedom to choose between any optometrist and any
physician skilled in diseases of the eye.
§2102. board of Examiners in Optometry Members' Appointment: Terms of Office;
Vacancies: Oaths
The Delaware State Board of Examiners in Optometry, heretofore established and
hereafter in this chapter referred to as the "Board", shall carry out and enforce this
chapter.
The Board shall be appointed by the Governor, and shall consist of three
residents of this State engaged in the actual practice of optometry and two public
members, who shall also be residents of this State. Said public members shall not be
nor ever have been licensed as an optometrist, ophthalmologist or optician; nor be a
member of the immediate family of an optometrist, ophthalmologist or optician; shall
not have been employed by an optometrist, ophthalmologist or optician; shall not have
had a material financial interest in the providing of goods and services to those
licensed in this chapter; nor have been engaged In any activity directly related to
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2 Chapter 1
optometry; shall not have been licensed in any health-related field nor be licensed to
practice law.
Said public members shall be accessible to inquiries, comments and suggestions from
the general public. The public members of the Board shall have full voting privileges,
except that they shall not be empowered to pass upon the clinical competency of persons
who have applied to be licensed as optometrists.
Each member of the Board shall hold office for a term of three years, beginning on
the seventh day of November in the year of appointment. Each member shall hold office
until his or her successor is appointed, and appointments to fill vacancies caused by
death, resignation or removal shall be made for the remainder of such terms by the
Governor.
The members of the Board, before entering upon their duties, shall
respectively take and subscribe to an oath to exercise the duties of their office with
fidelity. Such oath shall be filed with the clerk of the peace of the county in which
the member resides.
The Board shall have a common seal.
§2103. Election of officers: Annual and Special Meetings: Quorum; Oath. Record of
Proceedings
The Board shall choose annually 1 of its members as President and 1 as
Secretary, thereof, who severally shall have the power during their terms of office to
administer oaths and take affidavits, certifying thereto under their hand and seal of
the Board. The Board shall meet at least once in each year, and, in addition thereto,
whenever and wherever the President and Secretary thereof shall call a meeting.
A majority of the Board shall at all times constitute a quorum.
The Secretary of the Board shall keep a full record of the proceedings of the
Board, which record shall at all reasonable times be open to public inspection.
§2104. Rules and R.gulatlons
The Board may make any rules and regulations not inconsistent with the laws of the
State which it deems necessary or expedient for the effective enforcement of this
chapter or for the full and efficient performance of its duties hereunder.
§2105. C2Mpensation and Expenses: Receipts and Disbursements: Annual Report
Each member of the Board shall receive as compensation a sum not to exceed $50
for each day actually engaged in the duties of the office, which sum shall include
compensation for all expenses incurred by such member.
All fees and other money received by the Board shall be paid over to the State
Treasurer in accordance with Chapter 61 of Title 29. All expenses of the Board, within
the limits of appropriations made to it, shall be paid by the State Treasurer upon
receipt of vouchers signed by the proper officers of the Board.
The Board shall make an annual report of its proceedings to the Governor on
the first Monday of January of each year, which report shall contain an account of all
moneys received by the Board for the preceding year pursuant to this chapter.
§2106. Certificate_ Rewired
No person shall practice optometry in this State unless he shall first have
obtained a certificate of registration and filed the same, or a certified copy thereof,
with the Department of Finance.
§2107. Application Requirements:Jet
Every person before beginning to practice optometry in this State shall be of good
moral character, shall have had a preliminary education of at least 4 years of high
school or the equivalent from a state department of public education or from a
first-class university entrance examination, and have completed at least 2 years
preoptometry in a recognized college or university (provided, however, that this
preoptometry rquirement is not to affect any person who was attending a school of
optometry on May 20, 1949), and have graduated from a school or college approved by the
Board which maintains a course of optometry of at least 4 years of not less than 32
Chapter 1 3
months of residence work in optometry, and shall pass an examination before such Board
to determine his qualifications.
Any person desiring to be examined by the Board shall file his application
accompanied by an examination fee of $75, and shall appear before the Board at such
time and place as the Board may designate.
§2108. Examinations
Examinations shall be given at least once each year to new applicants and to those
who have previously failed such examinations.
The examinations shall consist of tests in practical optics, theoretical optics,
physiological optics, theoretical optometry, practical optometry, orthoptics, ocular
anatomy, physiology and pathology, general anatomy, general physiology, pathology and
hygiene, and such other knowledge as the Board deems essential to the practice of
optometry.
§2108. Reexamination Fee
If any applicant be rejected, he shall be entitled to be admitted to another
examination without further payment, but for all subsequent examinations he shall pay
an examination fee of $75.
§2110. Internshio Requirements
Every applicant, after complying with all the requirements of this chapter and
after satisfactorily passing the written examinations in optometry, shall, before
receiving any prescribed practical examinations and certificate to practice optometry,
be required to spend an internship in optometry for a period of six months, which shall
be approved by the Board. The Board shall waive the internship requirement for an
ethically practicing optometrist from any state, territory of the United States or the
District of Columbia when said venue has standards for licensure equal to, or greater
than, those of this State.
The Board may grant temporary licenses to any candidate successfully passing the
written and oral portions of the examinations. The temporary license shall be issued
only for the duration of the internship.
§2111. Certificate and Registration for Successful Applicants
All persons successfully passing the examinations shall be registered in the Board
Register, which shall be kept by the Secretary of the Board, as licensed to practice
optometry, and shall also receive a certificate of such registration, to be signed by
the President and Secretary of the Board, which shall be filed as provided in this
chapter. The applicant shall pay to the Board a fee of $10 for such registration and
certificate before the same shall be issued.
§2112. Renewal of Certificate
Every registered optometrist who desires to continue the practice of optometry in
this State shall on a biennial basis, on such date as the Board may determine, pay to
the Secretary a registration fee of $40. If all other requirements of license renewal,
as spelled out in this section, are satisfied, the licensee shall receive a renewal of
the registration. In case of default in such payment by any person, his certificate
may be revoked by the Board upon twenty days' notice to the person of the time and
place of considering such revocation, but certificate shall not be revoked for such
nonpayment if the person so notified shall pay said fee before or at such time of
consideration and such penalty as may be imposed by the Board. The Board may Impose a
penalty of $25 and no more on any person so notified, as a condition of allowing his
certificate to stand. The Board may collect any such fees by suit.
In addition to the other provisions of this section, each Delaware registered
optometrist shall be required to attend in each two-year period a total of twelve hours
of optometric or such other scientific educational lectures, symposiums or courses
approved by the Board. The full twelve hours may be taken in one year or may be spread
over the entire two-year period. Each Delaware registered optometrist shall be
required to furnish the Secretary of the Board satisfactory evidence that he has
completed such continuing education requirements each second year. The Board shall
publish in its rules and regulations the guidelines governing acceptable continuing
education requirements.
The Secretary of the Board shall notify in writing each Delaware registered
optometrist, at least thirty days prior to the date the renewal is due, of this
educational requirement.
In the event that any registered optometrist shall fail to meet such additional
requirement, his registration shall be revoked except when proven hardship makes
compliance impossible; provided further that the Board shall reinstate such
registration upon presentation of satisfactory evidence of successful completion of
continuing education requirements and upon payment of all fees due; further provided
that this educational requirement shall not apply to those Delaware registered
optometrists who are not in active practice in this State.
§2113. Revocation: Causes: Notice an Hearings: Reissuance
(a) The Board may revoke or suspend any certificate of registration granted by it
under this chapter:
For the conviction of a crime; or
For habitual drunkenness for six months immediately before the charge is
made; or
For gross incompetency; or
For contagious disease; or
Where any person presents to the Board any diploma, license or certificate
that has been secured or issued unlawfully or under fraudulent representations; or
Where any person is found guilty of unprofessional conduct as defined by
the Board; or
Where any person is found guilty by the Board of:
Practicing in a merchandising store; or
Practicing in an office not exclusively devoted to the practice of
optometry or other health care profession, where material or merchandise is
displayed pertaining to a business or commercial undertaking not bearing any
relation to the practice of optometry or other health care profession; or
practicing in a store or office which does not conform to that used by the
majority of professional optometrists in the area; or
Violating a Board rule or regulation duly promulgated by the Board
hereunder or any provision of this chapter; or
The continuance of an optometrist in the employ of or acting as an
assistant to any person, firm, corporation, either directly or indirectly,
after he has knowledge that such person, firm or corporation is violating the
laws of Delaware concerning the practice of optometry; or
Any conduct which is of a character likely to deceive or defraud the
public; or
(0 Soliciting In person or through an agent or agents for the purpose of
selling ophthalmic materials or optometric services or employing what are known
as "chasers", "steerers" or "solicitors" to obtain business, unless in
conjunction with a vision service plan approved by the Board; or
Causing or permitting the use of his name, profession or professional
title by or in conjunction with any association, company, corporation or
nonlicensed person, in any advertising of any manner, unless in conjunction
with a vision service plan approved by the Board; or
Practicing for, or in conjunction with, either directly or indirectly,
a corporation or company, except that allowed under Chapter 6 of Title 8:
provided that the foregoing shall not prevent a person licensed pursuant to
this chapter from rendering optometric services at a nonprofit clinic which is
operated by a corporation or company that is affiliated with a hospital
licensed by the State Board of Health and accredited by the Joint Commission on
Accreditation of Hospitals or the American Osteopathic Association.
4 Chapter 1
Chapter 1 5
(b) (1) Any practitioner or member of the public who has a question or complaint
concerning any aspect of the practice of optometry may, during the regular business
hours of a business day, contact the Board or the Division of Professional Regulation;
or voice such question or complaint at a business meeting of the Board.
The Board shall investigate any complaint, including oral complaints; and
shall follow through on those complaints which, upon investigation, appear to be valid
and well founded. In cases where the complainant is known to the Board it shall.
within six weeks after the leceipt of the complaint, notify the complainant whether or
not it will take any action in the matter. If the Board decides to take no action it
shall, by letter, state its reasons therefor. A record shall be kept of each
complaint, formal and informal, for a period of five years.
Upon receipt of a complaint against a practitioner, the Board shall determine
what action, if any, it shall take. Where the Board has determined to take further
action, the matter shall be heard by the Board within three months from the date on
which the complaint was received, unless circumstances surrounding the complaint
warrant a lengthier investigation. The Board shall fix the time and date for the
hearing, with notice to be personally delivered or served upon the practitioner at
least thirty days before the date fixed for the hearing. In cases where the
practitioner cannot be located or where personal service cannot be effected, substitute
service will be effected in the same manner as with civil litigation.
All hearings shall be informal without the rules of evidence. If the Board
finds, by a majority vote of all members, that the complaint has merit, the Board shall
take such action permitted under this Chapter as it deems necessary. The Board's
decision shall be in writing and shall include its reasons for such a decision. A copy
of the decision shall be mailed immediately to the complainant and to the
practitioner. The Board's decision shall become effective on the thirtieth day after
the date it is mailed or served on the practitioner, unless there is an appeal to the
Superior Court within that time.
Where either the complainant or the practitioner is in disagreement with the
action of the Board, either person may appeal the Board's decision to the Superior
Court within thirty days of service, or of the postmarked date of the Board's
decision. Upon such appeal, the court shall hear the evidence de novo, and the filing
of an appeal shall act as a stay of the Board's decision, pending final determination
of the appeal.
(c) Any person whose certificate has been revoked or suspended may, after the
expiration of 90 days, apply to have the same regranted to him upon satisfactory
showing that the disqualification has ceased.
§2114. State License
Upon presentation to it of a proper certificate from the Board and the payment to
it of the sum required by §2301 of Title 30 of the Delaware Code for the use of the
State, the Department of Finance shall issue a license certifying that such person is
authorized to conduct business. The license shall be effective for one year from the
date thereof, after which a new license may be issued upon the same terms and
conditions provided for in this section.
§2115. Esplay of Certificate
Every person to whom a certificate of examination or registration is granted shall
display the same in a conspicuous part of his office wherein the practice of optometry
Is conducted. The word "optometrist" shall appear on his sign together with his name.
All optometrists shall inform the Board within thirty days after establishing or
moving a main or branch office of the current address of the office. All main branch
office addresses maintained by an optometrist in this State shall be on file with the
Secretary of the Board.
§2116. Use of Drugs or Surgery
Nothing in this chapter shall be construed as conferring on the holder of any
certificate of registration for license, issued by the Board, the right to make use of
drugs or surgery in the treatment of eye diseases. He may employ topical ophthalmic
drugs for diagnostic purposes only; the drugs that he may use for such diagnosis will
be limited to the following four classes of drugs: Topical anesthetics, mydriatics,
cycloplegics and myotics; provided, however, that the Delaware State Board of Examiners
in Optometry will include an examination on the subject of pharmacology as it relates
6 Chapter 1
to optometry and the use of topically applied diagnostic drugs for all new applicants
for licensure; further provided, that no presently licensed optometrist shall be
permitted to make use of topically applied diagnostic drugs until he shall have
completed a refresher course in pharmacology as it relates to optometry and the use of
topically applied diagnostic drugs given by an institution accredited by a regional or
professional accrediting organization which is recognized by the National Commission on
Accreditation, and is approved by the Delaware State Board of Examiners in Optometry.
§2117. Exemptions
Nothing in this chapter shall be construed to prevent the sale and/or
application of spectacles in the ordinary course of trade, provided no part of this
chapter is violated by this exemption.
Those persons having the degree of Doctor of Medicine or Doctor of Osteopathy
and licensed to practice medicine and surgery in this State under Chapter 17 of this
title shall be exempt from this chapter, and nothing in this chapter shall apply to or
restrict any ophthalmic assistant, nationally registered as a contact lens technician,
from acting under the prescription and supervision of a licensed physician, osteopath
or optometrist from fitting, adapting or measuring for contact lenses so long as said
ophthalmic assistant's office is on the same premises as a licensed ophthalmologist,
osteopath or optometrist.
42118. Discrimination by State Boards between Ocular Practitioners Forbidden
No state board or commission, created or existing by law, including public schools
and other state agencies, in the performance of their duties, shall in any way show any
discrimination between ocular practitioners.
All boards or commissions shall honor ocular reports or other professional services
by legally qualified and licensed optometrists in this State.
§2119. Penalties; Enforcement
Whoever violates this chapter shall be fined not less than $100 nor more than $500.
The Attorney General or his deputies may prosecute every case to final judgment in
the county wherein the offense was committed whenever his attention shall be called to
a violation of this chapter.
The Court of Chancery shall have jurisdiction to issue temporary restraining
orders, preliminary injunctions and permanent injunctions to enjoin any violation of
this chapter in actions brought by the State Board of Examiners in Optometry, the
Delaware Optometric Association, Inc. or the Attorney General of the State."
Section 2. The three persons constituting the State Board of Examiners in Optometry on
the effective date of this Act shall continue in office as members of the Board until the
eiplration of the terms for which they were appointed.
Section 3. If any provision of this Act or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions or
applications of the Act which can be given effect without the invalid provision or
application, and to that end the provisions of this Act are declared to be severable.
Approved December 15, 1986.
CHAPTER 2
FORMERLY
HOUSE BILL NO. 18
AN ACT TO AMEND CHAPTER 17, TITLE 24 OF THE DELAWARE CODE RELATING TO THE TEMPORARY
SUSPENSION OF CERTIFICATES TO PRACTICE MEDICINE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Subchapter V. Chapter 17, Title 24 of the Delaware Code by adding a
new Section 1738 to read as follows:
"§l738 Temorary Suspension Pending Hearing
In the event the Board receives a formal or informal written complaint
concerning a physician's activities which the Board determines alleges matters
presenting a clear and immediate danger to the public health, the Board may issue an
order temporarily suspending the physician's certificate to practice medicine, pending a
hearing. No order temporarily suspending a certificate to practice medicine shall be
issued by the Board, with less than 24 hours prior written or oral notice to the
physician or his attorney so that the physician or his attorney may be heard in
opposition to the proposed suspension and unless at least eight members of the Board
vote in favor of such a temporary suspension. An order of temporary suspension pending
a hearing shall remain in effect for a period of time no longer than 60 days from the
date of the issuance of said order, unless the suspended physician requests a
continuance of the date for the convening of the hearing panel. In such an event, the
order of-,temporary suspension pending a hearing shall remain in effect until the hearing
pane) has convened and a decision rendered.
The physician whose certificate to practice medicine has been temporarily
suspended pending a hearing shall be notified forthwith in writing. Notification shall
consist of a copy of the complaint and the order of temporary suspension pending a
hearing and shall be personally served upon the physician or sent by certified mail,
return receipt requested, to the physician's last known address.
A physician whose certificate to practice medicine has, pursuant to this
Section, been temporarily suspended pending a hearing, may request an expedited
hearing. The Board shall schedule the hearing on an expedited basis provided that the
Board receives said request within five calendar days from the date on which the
physician received notification of the decision of the Board to temporarily suspend his
certificate to practice medicine.
As soon as possible after the issuance of the order temporarily suspending the
physician's certificate to practice medicine pending a hearing, the Board shall appoint
a 3-member hearing panel pursuant to its power under §1730 (16) of this Title. The
hearing panel, after notice to the physician, shall convene within 60 days of the date
of the issuance of the order of temporary suspension in order to consider the evidence
regarding the matters alleged in the complaint. In the event that a physician, in a
timely manner, requests an expedited hearing, the hearing panel shall convene within 15
days of the receipt by the Board of such a request. The 3-member panel shall proceed to
a hearing in accordance with the procedures set forth at §1734 of this Title and shall
render a decision within 30 days.
In addition to pertinent findings of fact to be made by the hearing panel, the
panel shall also determine whether the facts found by it constitute a clear and
immediate danger to public health. If the hearing panel determines that the facts found
by it constitute a clear and immediate danger to public health, then, the order of
temporary suspension shall remain in effect until such time as the full Board shall
deliberate and reach conclusions of law based upon the finding of fact made by the
hearing panel pursuant to the provisions of §1734 (f) of this Title. In no vent shall
the order of temporary suspension remain in effect for longer than 60 days from the date
of the decision rendered by the hearing panel unless the suspended physician requests an
extension of the order of temporary suspension pending a final decision of the Board.
Upon a final decision of the Board, the order of temporary suspension shall be vacated
in favor of the disciplinary action ordered by the Board."
Section 2. Amend §1730(a)(16), Chapter 17, Title 24 of the Delaware Code by striking
said Section in its entirety and substituting in lieu thereof the following:
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8 Chapter 2
"(16) To designate three members of the Board to act as a hearing panel for the
purposes of hearing charges of unprofessional conduct as set forth in §1731(b) of this
Title or inability to practice medicine as set forth in §1731(c) of this Title or making
determinations of fact in connection with the temporary suspension of a certificate to
practice medicine pursuant to §1738 of this Title."
Section 3. This Act shall become effective immediately upon its enactment into law.
Approved February 17, 1987.
CHAPTER 3
FORMERLY
HOUSE BILL NO. 23
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 53, TITLE 30 OF THE DELAWARE CODE, RELATING TO THE TAX ON THE SALE
OR USE OF TOBACCO PRODUCTS OTHER THAN CIGARETTES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1, Amend Section 5305, Title 30 of the Delaware Code, by striking Subsection
(b) of said Section in its entirety and by substituting in lieu thereof a new Subsection
(b) to read as follows;
"(b) A tax is imposed and assessed upon the sale or use of all tobacco products
other than cigarettes, and including but not limited to, smokeless tobacco products and
cigars within this State at the rate of 15% of the wholesale price on such products."
Section 2. Amend Section 5305, Title 30 of the Delaware Code, by adding thereto a new
Subsection (e) to read as follows:
"(e) For purposes of this Chapter: (1) The Term 'wholesale price shall mean the
price for which a manufacturer sells a tobacco product to a distributor exclusive of any
discount, rebate or other reduction; and (2) The term 'cigar' means any roll for smoking
which is not a cigarette and which is made wholly or in part of tobacco or any
substitute therefore when the cover of the roll is made chiefly of tobacco."
Approved February 17, 1987.
10
CHAPTER 4
FORMERLY
SENATE BILL NO. 16
AN ACT TO AMEND CHAPTER 17, TITLE 18, DELAWARE CODE, RELATING TO LIMITED REPRESENTATIVES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 17, Title 18, Delaware Code, by adding thereto a new §1706 to
read as follows:
"§1706. Definition and Responsibilities of Limited Representative
A limited representative is any individual, partnership or corporation holding
a limited representative's certificate of authority and appointed by an insurer to
solicit or negotiate contracts for those lines of authority, and only those lines of
authority, specified in subsection (g) of §1715 of this Title which the Commissioner may
deem, by regulation, essential for the transaction of insurance business in this State
and which do not require that level of qualifications required for an agent's or
broker's certificate of authority.
A limited representative is subject to all the duties, responsibilities,
liabilities, prohibitions and penalties to which agents are subject as pertains to the
particular line or lines of insurance for which the limited representative holds a
certificate of authority."
Section 2. Amend §1715, Chapter 17, Title 18, Delaware Code, by adding thereto a new
subparagraph to be designated as subparagraph (g) and (h) to read as follows:
"(g) A limited representative may be qualified and licensed and a qualified
insurance agent may hold 1 or more of the following limited lines of authority:
Vehicle liability and vehicle damage (automobile insurance) - Code No. 9.
Credit life, credit health insurance - Code No. 10.
(h) Continuing education requirements prescribed by regulation of the Insurance
Commissioner for limited representatives shall include only those lines for which the
limited representative is certified."
Section 3. Amend §1725, Chapter 17, Title 18, Delaware Code, by adding thereto a new
sentence to read as follows:
"No regulation may require additional or continuing education for limited
representatives qualified and licensed under §1715(g) of this Chapter in any lines other
than those for which certification has been granted."
Approved February 17, 1987.
CHAPTER 5
FORMERLY
SENATE BILL NO. 46
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 45, TITLE 10, DELAWARE CODE, RELATING TO JURIES, TRIAL BY JURY,
JURY SELECTION AND SERVICE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 45, Title 10, Delaware Code by striking said Chapter in its
entirety and substituting in lieu thereof the following new Chapter:
"CHAPTER 45. JURY SELECTION AND SERVICE
54501. Declaration of Policy
It is the policy of this State that jurors serving in each county shall be selected
at random from a fair cross section of the population of that county and that all
qualified persons shall have an opportunity to be considered for jury service and an
obligation to serve as jurors when summoned for that purpose.
54502. Prohibition of Discrimination
No person shall be excluded from jury service in this State on account of race,
color, religion, sex, national origin, or economic status.
54503. Definitions
As used in this chapter:
"court" means the Superior Court of the State of Delaware, and includes any
judge of the court;
"clerk" means the Prothonotary of each county, and includes any deputy or
clerk in the office of the Prothonotary;
"jury selection plan" means a written plan designed to carry out the policy
and the provisions of this chapter;
"voter registration list" means the current official record of persons
registered to vote in a general election;
"source list" means a list or an electronic system for the storage of the
names on the voter registration list which may be supplemented with names from other
sources to foster the policy of this chapter;
"master list" means a list or an electronic system for the storage of the
names of prospective jurors selected randomly from the source list;
"juror qualification form" means a form approved by the court which shall
elicit information relevant to the selection of jurors in accordance with this chapter;
"qualified jury wheel" means a device or an electronic system for the storage
of the names of prospective jurors on a master list who are not disqualified from jury
service.
54504. Jury Commissioners
The court shall appoint two suitable persons in each county, both of whom shall
reside in the county in which they serve and shall not at any time be of the same
political party, to serve as jury commissioners. Jury commissioners shall take an oath
to perform faithfully the duties of a jury commissioner and shall serve at the pleasure
of the court. The court may appoint a jury commissioner pro tempore to replace a jury
commissioner who is temporarily unable to serve.
54505. Grand Jury
Grand juries in New Castle County shall consist of 15 members, and the affirmative
vote of nine members shall be necessary to find a true bill of indictment. Grand juries
in Kent County and in Sussex County shall consist of 10 members, and the affirmative
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12 Chapter 5
vote of seven members shall be necessary to find a true bill of indictment. Grand
jurors shall take an oath to perform faithfully the duties of a grand juror.
§4506. SiaciallutY
The court may order a special jury upon the application of any party in a complex
civil case. The party applying for a special jury shall pay the expense incurred by
having a special jury, which may be allowed as part of the costs of the case.
0507. Jury Selection Plan
(a) The court shall adopt a jury selection plan to carry out the policy and the
provisions of this chapter. The court may adopt separate plans and varying regulations
for each county and for grand, petit, and special juries, and may amend a plan at any
time. The plan shall provide standards and methods for the selection and service of
jurors, including but not necessarily limited to the following:
the duties of jury commissioners, clerks, and the court administrator or
other employees of the court;
the composition of source lists, including whether voter registration
lists shall be supplemented with names from other sources:
the selection of names for master lists;
the content of the juror qualification form;
the groups of persons or occupational classes whose members shall be
excused from jury service upon request;
the disqualification, excuse, and exclusion of prospective jurors;
the maintenance of qualified jury wheels, including the maximum time that
the names of prospective jurors shall remain in a qualified jury wheel and the
minimum number of names to be contained therein;
assignment of persons to the grand, petit, and special jury panels, or to
courts other than Superior Court:
the length of jury service;
the compilation, disclosure, and preservation of records used in the
selection process.
(b) Persons having custody, possession, or control of any list, record, or other
information required for use in the jury selection process shall supply it or make it
available to the court for inspection, reproduction, and copying at all reasonable
times, and persons having responsibility for devising or operating data processing
systems or computer programs for the State shall certify that any such system or program
complies with the jury selection plan when required by the court. The court may compel
compliance with this subsection by appropriate process.
§4508. .COMAleAiOn of Jul(ir Qualification Form
Prospective jurors shall be selected randomly from the source list for
placement on a master list from time to time as needed;
The clerk shall mail a juror qualification form to persons whose names are on
a master list with instructions to provide the information sought. The juror
qualification form shall contain a declaration that the responses are true to the best
of the prospective juror's knowledge, and acknowledgement that a false statement therein
may be punished by a fine or imprisonment, or both. If the prospective juror is unable
to fill out the form, another person may do it and shall indicate that fact and the
reason therefor. If it appears that there is an omission, ambiguity, or error in the
information provided, the clerk shall instruct the prospective juror to make the
necessary addition, clarification, or correction.
Any person who fails to provide information sought as instructed shall be
directed to appear forthwith before the clerk to fill out the juror qualification form.
Any person who fails to appear as directed may be ordered by the court to appear and
show cause for failure to do so.
Chapter 5 13
At the time of appearance for jury service, or at the time of any interview
before the court or clerk, any prospective juror may be required to fill out another
juror qualification form in the presence of the court or clerk, at which time the
prospective juror may be questioned, but only with regard to responses to questions
contained on the form and grounds for disqualification, excuse, or exclusion. Any
information thus acquired by the court or clerk shall be noted on the juror qualification
form.
§4509. Disqualification from Jury Service
(a) The court shall determine on the basis of information provided on the juror
qualification form or interview with the prospective juror or other competent evidence
whether the prospective juror is disqualified for jury service.
(b) All persons are qualified for jury service except those who are:
not citizens of the United States;
less than 18 years of age;
not residents of the county of prospective jury service:
unable to read, speak, and understand the English language;
incapable, by reason of physical or mental disability, of rendering
satisfactory jury service; or
convicted felons who have not had their civil rights restored.
(c) A prospective juror may be required to submit proof as to possible
disqualification, including a physician's or Christian Science Practitioner's
certificate, and the physician or practitioner is subject to inquiry by the court at its
discretion.
§4510. Selection and Summoning of Jury Panels
Prospective jurors shall be selected randomly from the qualified jury wheel
for assignment to grand, petit, and special jury panels from time to time as needed.
The clerk shall cluse each person selected for jury service to be served with
a summons, either personally, or by mail addressed to the person's usual residence,
business, or post office address, requiring the person to report for jury service at a
specified time and place. Any person who fails to appear as directed may be ordered by
the court to appear and show cause for failure to do so.
If there is an unanticipated shortage of available jurors, the court may
require the sheriff to summon a sufficient number of jurors selected in a manner
prescribed by the court.
§4511. Excuse or Exclusion from Jury Service
The court shall determine on the basis of information provided on the juror
qualification form or interview with the prospective juror or other competent evidence
whether the prospective juror should be excused or excluded from jury service.
A person who is not disqualified may be excused from jury service by the court
only upon a showing of undue hardship, extreme inconvenience, or public necessity, for a
period the court deems necessary, at the conclusion of which the person shall reappear for
jury service in accordance with the court's direction. The court may determine that
membership in specified groups of persons or occupational classes constitutes a showing of
undue hardship, extreme inconvenience, or public necessity.
A person who is not disqualified may be excluded from jury service by the
court only upon a finding that such person would be unable to render impartial jury
service or would be likely to disrupt or otherwise adversely affect the proceedings.
§4512. Challenging Compliance with Selection Procedures
(a) Within 7 days after the moving party discovers, or by the exercise of
diligence could have discovered, the grounds therefor, and in any event before the jury
Is sworn to try the case, a party may move to stay the proceedings, and in a criminal
case to dismiss the indictment, or for other appropriate relief, on the ground of
14 Chapter 5
substantial failure to comply with this chapter in selecting the grand, petit, or
special jury.
Upon motion filed under subsection (a) containing a sworn statement of facts
which, if true, would constitute a substantial failure to comply with this chapter, the
moving party is entitled to present in support of the motion the testimony of the jury
commissioners or the clerk, any relevant records and papers not public or otherwise
available used by the jury commissioners or the clerk, and any other relevant evidence.
If the court determines that in selecting a grand, petit, or special jury there has been
a substantial failure to comply with this chapter, the court may stay the proceedings
pending the selection of the jury in conformity with this chapter, dismiss an
indictment, or grant other appropriate relief.
The procedures prescribed by this section are the exclusive means by which a
jury may be challenged on the ground that the jury was not selected in conformity with
this chapter.
§4513. Disclosure and Preservation of Records
The names of persons summoned for jury service shall be disclosed to the
public and the contents of jury qualification forms completed by them shall be made
available to the parties unless the court determines that any or all of this information
should be kept confidential or its use limited in whole or in part in any case or cases.
Records used in the selection process shall not be disclosed, except in
accordance with the jury selection plan or as necessary in the preparation or
presentation of a motion challenging compliance with this chapter.
Records used in the selection process shall be preserved for at least 4 years.
§4514. Compensation and Reimbursement
Jury commissioners shall receive compensation to be fixed by the court but not
to exceed $1000 per annum and shall be reimbursed for necessary travel expense at the
rate of $.15 per mile.
Jurors shall be compensated at a per diem rate of $15 and shall be reimbursed
for necessary travel expense at the rate of $.15 per mile. The State shall pay for food
and lodging during sequestration of a jury.
The court shall keep a record of attendance and travel or other expense and
shall certify the amount due for payment by the State Treasurer.
§4515. Protection of Jurors Employment
An employer shall not deprive an employee of employment, or threaten or
otherwise coerce the employee with respect thereto, because the employee receives a
summons, responds thereto, serves as a juror, or attends court for prospective jury
service.
Any employer who violates subsection (a) is guilty of criminal contempt and
upon conviction may be fined not more than $500 or imprisoned not more than 6 months, or
both.
If an employer discharges an employee in violation of subsection (a), the
employee may file a civil action in Superior Court within 90 days for recovery of wages
lost as a result of the violation and for an order requiring the reinstatement of the
employee. An employee who prevails shall be allowed a reasonable attorney's fee fixed
by the court.
§4516. Failure to Perform Jury Service
A person who fails to appear and show cause as ordered by the court for failure to
comply with the clerk's direction to appear for the purpose of completing a juror
qualification form or for failure to comply with a summons to appear for jury service or
to complete jury service is guilty of criminal contempt and upon conviction may be fined
not more than $100 or imprisoned not more than 3 days, or both.
§4517. Jurisdiction
The Superior Court shall have original and exclusive jurisdiction over any
violation of this Chapter."
Section 2. This Act shall become effective upon its enactment into law. Any person who
was selected as a prospective juror before the effective date of this Act may serve after it becomes effective.
Approved February 17, 1987.
Chapter 5 15
16
CHAPTER 6
FORMERLY
SENATE BILL NO. 73
AN ACT TO PERMIT CHRISTOPHER SMITH, A RESIDENT OF NEWARK, DELAWARE TO MARRY HALA TURJUMAN,
A RESIDENT OF DELAWARE.
WHEREAS, Christopher Smith of 16 Henderson Hill Road, Newark, Delaware, wishes to marry
Hala Turjuman, a resident of Delaware; and
WHEREAS, Christopher Smith's marriage ceremony is scheduled for Saturday, May 2, 1987;
and
WHEREAS, Christopher Smith starts Air Traffic Controller School in Oklahoma City,
Oklahoma on Tuesday. March 31, 1987; and
WHEREAS, once he starts the training course he will not be permitted time off to fly
back to Delaware to purchase a marriage license from the Clerk of the Peace of New Castle
County in compliance with the provisions of §107(a), Chapter 1, Title 13, Delaware Code
which requires the parties to obtain a marriage license at least 24 hours prior to the
ceremony: and
WHEREAS, Christopher Smith plans to fly back to Delaware for the marriage ceremony late
Friday evening for the marriage ceremony on Saturday, May 2, 1987.
NOW, THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Christopher Smith, 16 Henderson Hill Road, Newark, Delaware and Fiala
Turjuman, also of New Castle County are hereby exempted from the application of §107(a),
Chapter 1, Title 13, Delaware Code, and are specifically permitted to marry on Saturday,
May 2, 1987 notwithstanding the provisions of the Delaware Code to the contrary. The Clerk
of the Peace for New Castle County is hereby authorized to issue to Christopher Smith and
Hula Turjuman an official marriage license pursuant to this Act.
Approved April 7, 1987.
CHAPTER 7
FORMERLY
HOUSE SUBSTITUTE NO. 1
FOR
HOUSE BILL NO. 61
AN ACT TO AMEND TITLE 13 OF THE DELAWARE CODE RELATING TO CHILD SUPPORT ENFORCEMENT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §513(b)(10), Chapter 5, Title 13, Delaware Code, by inserting after
the first sentence, the following:
Any employer who refuses to hire an obligor as a result of an attachment under
this Section shall be liable for a civil penalty of not more than $200 for the first
offense and each subsequent offense."
Section 2. Amend Section 513, Chapter 5, Title 13, Delaware Code, by adding new
subsections (c), (d), (e), and (f) of said Section as follows:
(c)(1) Where an order for child support, including orders issued prior to the
effective date of this Act has been entered under this Chapter, Chapter 6 or Chapter 15
of this Tttle, the right of each and every child support installment or payment becomes
absolute and vested upon coming due with the full force, effect and attributes of a
judgment of the Family Court of the State of Delaware.
Remedies available under this subsection are cumulative with any and all other
remedies available to enforce a child support obligation.
After receipt by the Division of Child Support Enforcement of a copy of an
order of child support as set forth in paragraph (1) of this subsection made payable
through the Division, the Division shall promptly record all payments received and apply
said payments to installment or payment amounts due and owing by the obligor in
accordance with regulations promulgated by the Secretary of the Department of Health and
Social Services. Said regulations shall specifically include administrative procedures
to make technical corrections in the Division's accounting records. With regard to any
order of child support made payable through the Division, the Division's records shall
be presumptive of the payment or nonpayment of each installment payment.
(d)(1) The Court shall have continuing jurisdiction to modify prospectively an
order of child support entered by the Court including orders issued prior to the
effective date of this Act so long as the obligated parent has a duty of support under
this Chapter, Chapter 6 or Chapter 15 of this Title and at least one of the parents or
the child whose support is at issue resides in the State.
(2) An order of child support entered by this Court or a court of competent
jurisdiction in this or any other state, including orders entered prior to the effective
date of this Act, shall not be retroactively modified except with respect to any period
during which there is a pending petition for prospective modification but only from the
date that notice of such petition has been given to the respondent directly or through
the respondent's agent.
The Court shall have continuing jurisdiction to enforce an order of child
support entered by the Court, including orders issued prior to the effective date of
this Act, so long as the obligated parent has a duty to support the child or children
under this Chapter, Chapter 6 or Chapter 15 of this Title or there are arrearages or
past due amounts due and owing on such an order. Nothing in this subsection shall be
construed as limiting the Court's authority under Chapter 4 of this Title.
"Notice" for purposes of enforcing or modifying an order of child support shall
mean mailed notice mailed by certified mail return receipt requested to the last known
address provided to the Court by the parties: provided, however, that where the
respondent is a IV-D client as defined by regulation of the Secretary of the Department
of Health and Social Services, the Division of Child Support Enforcement shall be the
appropriate agent for the receipt of any such notice."
Section 3. Amend Chapter 5, Title 13, Delaware Code by adding a new Section 517 as
follows:
17
18 Chapter 7
1517. Termination of child support.
An order of current child support entered by this Court or a court of
competent jurisdiction in this State shall terminate by operation of law when all
minor children subject to said order have reached 18 years; provided, however, that if a child over 18 is still enrolled in high school current support shall terminate
by operation of law when the child receives a high school diploma or attains the
age of 19, whichever event first occurs.
An order of current child support entered by this Court or a court of
competent jurisdiction in this State shall terminate if custody of all children who
are the subject of said order is transferred to the obligated parent pursuant to an
order of a court of competent jurisdiction or the written voluntary agreement of
the parents.
Notwithstanding the above, the obligation for payment of arrears or past
due support shall terminate by operation of law when all arrears or past due
support have been paid."
Section 4. This Act shall become effective on March 31, 1987.
Approved April 10, 1987.
CHAPTER 8
FORMERLY
SENATE BILL NO. 17
AN ACT TO AMEND CHAPTER 348, VOLUME 65, LAWS OF DELAWARE, "AN ACT MAKING APPROPRIATIONS FOR
THE EXPENSE OF THE STATE GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 1987; SPECIFYING
CERTAIN PROCEDURES, CONDITIONS AND LIMITATIONS FOR THE EXPENDITURE OF SUCH FUNDS; AND
AMENDING CERTAIN STATUTORY PROVISIONS." RELATING TO PERSONAL NEEDS ALLOWANCES OF
PATIENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 172, Chapter 348, Volume 65, Laws of Delaware by adding
thereto the following:
"The funds provided for personal needs allowances shall be expended solely for the
personal needs of the recipient and shall not be comingled with other appropriations.
Persons authorized to receive and maintain personal needs allowance funds shall maintain
an accurate accounting of said funds and make available to a recipient or his or her
guardian, upon request, pertinent information about said patient's personal needs
account."
Approved April 20, 1987,
CHAPTER 9
FORMERLY
SENATE BILL NO. 22
AN ACT TO AMEND SUBCHAPTER IV, CHAPTER 1, TITLE 23, DELAWARE CODE, RELATING TO PILOTAGE
RATES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §131(a) of Subchapter IV, Chapter 1, Title 23, Delaware Code, by
striking the date "January 1, 1984" as the same appears in the first sentence of said
subsection and substituting in lieu thereof the date "January 1, 1987".
Section 2. Amend §131(a)(2) of Subchapter IV, Chapter 1, Title 23, Delaware Code, by
striking subparagraphs (a).(b), and (c) in their entirety as the same appear in said
subparagraphs and inserting in lieu thereof the following new subparagraphs to read as
follows:
"(a) $3.69 from January I, 1987, retroactively through December 31, 1987.
$3.87 from January 1, 1988 through December 31. 1988.
$4.06 thereafter."
Section 3. Amend §131(b), Subchapter IV, Chapter 1, Title 23, Delaware Code, by
striking the date "January 1, 1984" as the same appears in the said paragraph (b) and
inserting in lieu thereof the date "January 1. 1987".
Section 4. Amend §131(b)(2) of Subchapter IV, Chapter I, Title 23, Delaware Code, by
striking subparagraphs (a), (b), and (c) in their entirety and substituting in lieu thereof
the following new subparagraphs to read as follows:
"(a) $3.69 from January 1, 1987, retroactively, through December 31, 1987,
$3.87 from January 1. 1988 through December 31, 1988,
$4.06 thereafter."
Approved April 16, 1987.
19
20
CHAPTER 10
FORMERLY
HOUSE BILL NO. 30
AN ACT CONCURRING IN A PROPOSED AMENDMENT TO ARTICLE I OF THE CONSTITUTION OF THE STATE OF
DELAWARE RELATING TO THE RIGHT TO KEEP AND BEAR ARMS FOR THE DEFENSE OF SELF, FAMILY,
HOME AND STATE, AND FOR HUNTING AND RECREATIONAL USE.
WHEREAS, an amendment to the Constitution of the State of Delaware was proposed in the
133rd General Assembly, being Chapter 332, Vol. 65, Laws of Delaware, as follows:
AN ACT PROPOSING AN AMENDMENT TO ARTICLE I OF THE CONSTITUTION OF THE STATE OF DELAWARE
RELATING TO THE RIGHT TO KEEP AND BEAR ARMS FOR THE DEFENSE OF SELF, FAMILY, HOME AND
STATE, AND FOR HUNTING AND RECREATIONAL USE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all
members elected to each House thereof concurring therein):
Section 1. Amend Article I of the Delaware Constitution, by adding
thereto a 'Section 20' to read as follows:
'Section 20. A person has the right to keep and bear arms for the
defense of self, family, home and state, and for hunting and recreational
use.'"
WHEREAS, the said proposed amendment was adopted by two-thirds of all members elected to
each House of the 133rd General Assembly.
NOW, THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all
members elected to each House thereof concurring therein):
Section 1. The said proposed amendment is hereby concurred in and adopted, and shall
forthwith become a part of the Constitution of the State of Delaware.
Approved April 16, 1987,
CHAPTER 11
FORMERLY
SENATE BILL NO. 62
AN ACT TO AMEND CHAPTER 183, VOLUME 22, LAWS OF DELAWARE, BEING AN ACT ENTITLED "AN ACT TO
INCORPORATE THE TOWN OF GREENWOOD", AS AMENDED, BY INCREASING THE AMOUNT TO BE RAISED BY
TAXATION.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all
members elected to each House thereof concurring therein):
Section 1. Amend Chapter 183, Volume 22, Laws of Delaware, as amended by Section 2,
Chapter 81, Volume 48, Laws of Delaware, by striking said Section 2, Chapter 81, Volume 48,
Laws of Delaware in its entirety and substituting in lieu thereof the following:
"The Town Council shall have the power and authority to levy and collect taxes for
any and all municipal purposes upon all real estate and improvements located thereon;
provided however, that the amount to be raised from this source shall not exceed in any
one year the sum of fifty thousand dollars ($50,000.00); and provided further, that
there shall be no limitation upon the amount which may be raised from the taxation of
real estate for the payment of interest on and principal of any bonded indebtedness
whether hereinbefore or hereafter incurred."
Approved April 29, 1987.
CHAPTER 12
FORMERLY
SENATE BILL NO. 80
AN ACT TO AMEND CHAPTER 348, VOLUME 65, LAWS OF DELAWARE, BEING SENATE BILL NO 560 OF THE
133RD GENERAL ASSEMBLY, AND BEING AN ACT ENTITLED "AN ACT MAKING APPROPRIATIONS FOR THE
EXPENSE OF THE STATE GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 1987; SPECIFYING
CERTAIN PROCEDURES, CONDITIONS, AND LIMITATIONS FOR THE EXPENDITURE OF SUCH FUNDS; AND
AMENDING CERTAIN PERTINENT STATUTORY PROVISIONS", BY MAKING CERTAIN ADDITIONS,
DELETIONS, AND ADJUSTMENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fourths of all
members elected to each house thereof concurring therein):
Section 1. Amend Chapter 348, Volume 65, Laws of Delaware, being Senate Bill No. 560 of
the 133rd General Assembly, by making the following adjustments to General Funds in
Section 1:
Increase/
Pane Line Orunization/IteM from 12 (Decrease)
12-05-03 Debt Management
14 34 Debt Service - Regular $ 8,598.8 $ 7,598.8 $ (1,000.0)
20-01-00 Office of the Secretary
20-01-01 Administration
16 New Contingency - Bicentennial Committee -0- 1,000.0 1,000.0
Section 2. Further amend Section 1 of Chapter 348, Volume 65, Laws of Delaware, being
Senate Bill No. 560 of the 133rd General Assembly, by recomputing all subtotals and totals
accordingly, as a result of this Act.
Approved April 29, 1987.
22
CHAPTER 13
FORMERLY
SENATE BILL NO. 56
AS AMENDED BY SENATE AMENDMENT NOS. 1 AND 2
AN ACT TO AMEND SECTIONS 937(b)(14), 937(g) AND 933(1), TITLE 10 OF THE DELAWARE CODE WITH
REFERENCE TO THE MIXING OF CHILDREN CHARGED WITH OR ADJUDICATED DELINQUENT WITH
DEPENDENT OR NEGLECTED CHILDREN.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Title 10, Chapter 9 of the Delaware Code, by striking §937(g) and
substituting in lieu thereof a new subsection which shall read as follows:
"(g) Mixing of Children Charged with or Adjudicated Delinauent with Dependent or
Neglected Children
(1) For the purpose of this subsection, the following definitions shall apply:
"Level 1 Juvenile Offense" means any delinquent act constituting a
felony under the laws of this State, any other State and the United States.
"Level 2 Juvenile Offense" means any delinquent act constituting a
Class A or a Class B misdemeanor, under the laws of this State, any other State
and the United States.
"Level 3 Juvenile Offense" means any delinquent act constituting a
Class C or an unclassified misdemeanor under the laws of this State, any other
State and the United States.
"Mixing" means placement of any child charged with a Level 1 Juvenile
Offense or found to have committed any delinquent act, in the same facility
with dependent or neglected children.
"Facility" means any shelter, group home, foster home, treatment
center, institution, or any other place designated as a temporary or permanent
placement for children, excluding accredited hospitals.
"Repeat Offender" means any child adjudicated delinquent for 3 or more
separate delinquent acts, not including Class C or unclassified misdemeanors,
occurring within any period of twelve months.
(2) No dependent or neglected child shall be placed in a secure detention facility
or a secure correctional facility unless charged with or found to have committed a
delinquent act. No child shall be placed in an adult correctional or adult detention
facility.
(3) There shall be no mixing unless the following requirements are met:
When a child is charged with or found to have committed a Level 1
Juvenile Offense or is a Repeat Offender, the Department must obtain a Court
order authorizing such placement, after the Secretary or a Division Director of
the Department of Services for Children, Youth and Their Families shall
recommend such placement in writing. Before authorizing mixing, the Family
Court must specifically find that the proposed placement of the child offender
does not represent a physical risk to others, and that the placement is not
contrary to the best interests of the other children in the facility.
When a child who is not a repeat offender is found to have committed a
Level 2 Juvenile Offense, no mixing shall occur unless the Secretary or a
Division Director of the Department of Services for Children, Youth and Their
Families, after review of the case, certifies in writing that the proposed
placement of the child offender does not represent a physical risk to others,
and that the placement is not contrary to the best interests of the other
children in the facility.
When a child who is not a repeat offender is found to have committed a
Level 3 Juvenile Offense, the Department of Services for Children, Youth and
Their Families, may mix that child subject to its regulations, provided that
Chapter 13 21
such placement is not contrary to the best interests of the other children in
the facility.
All placements which result in mixing of Level 1 or Level 2 child offenders
shall be reviewed within 72 hours by the Department. Subsequently, such placement shall
be reviewed after two months, and regularly thereafter. The two month review shall be
made by the Foster Care Review Board. The purpose of the review shall be to determine
whether, under the placement, the child offender continues not to represent a physical
risk to others, and that such placement is not contrary to the best interests of the
other children in the facility.
The Department shall promulgate regulations in accordance with this Chapter
within 60 days of the effective date of this Act."
Section 2. Amend Title 10, Chapter 9 of the Delaware Code, by striking §933(1) and
enacting a new §933(1) which shall read as follows:
"(1) When the child is not charged with a delinquent act, immediately contact the
Division of Child Protective Services of the Department of Services for Children, Youth
and Their Families, who shall be responsible for further pursuing the whereabouts of the
custodian or providing shelter and care for the child in a shelter home, foster home,
group home, private agency home or other appropriate facility for children. The child
shall be placed in a manner consistent with 10 Del. C. Sec. 937(g). After making every
reasonable effort to locate the custodian, the Division of Child Protective Services of
the Department of Services for Children, Youth and Their Families may release the child
to the child's custodian or forthwith file with the Court a petition for custody
alleging dependency or neglect."
Section 3. Amend Title 10, Chapter 9 of the Delaware Code, by striking §937(b)(14) and
enacting a new §937(b)(14) which shall read as follows:
"(14) May commit a mentally ill, retarded or disturbed child for observation or
treatment to any appropriate institution within the State, or to any institution without
the State which will consent to receive the child, any other provision of this Chapter
notwithstanding."
Section 4. If any provision of this Act or application thereof to any person or
circumstance is held unconstitutional and therefore invalid, such invalidity shall not
affect other provisions or applications of the Act, which can be given effect without the
invalid provision or application, provided the basic purposes of this Act can still be
served and to that end the provisions of this Act are declared to be severable.
Approved May 5, 1987.
24
CHAPTER 14
FORMERLY
HOUSE BILL NO. 24
AS AMENDED BY HOUSE AMENDMENT NOS. 1, 2 AND 3
AN ACT TO AMEND CHAPTER 44, TITLE 21, DELAWARE CODE RELATING TO ABANDONED VEHICLES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (two-thirds of all
members elected to each House thereof concurring therein):
Section 1. Amend §4415, Chapter 44, Title 21, Delaware Code by striking Subsection
"(c)" in its entirety and substituting in lieu thereof a new Subsection to read as follows:
"(c) The wrecker owner in possession of a Motor Vehicle and requesting a Delaware
Certificate of Title shall contact the Delaware Divisiun of Motor Vehicle to determine
the owner(s) of any vehicle with undetermined ownership within five calendar days of
towing the vehicle."
Section 2. Amend §4415, Chapter 44, Title 21, Delaware Code by adding new Subsections
"(J)". "(k)", and "(1)° to read as follows:
"(j) Or, any wrecker owner may transfer a vehicle described in Subsection (a)
directly to a licensed automotive recycler when said vehicle has been in his possession
for 30 days, without owner notification, only after the vehicle has been inspected by
the State Police Auto Theft Unit and upon receipt of a Certificate Of Authority To
Dispose Of A Towed Vehicle Form issued by the Department. A wrecker owner shall be
issued a Certificate Of Authority To Dispose A Towed Vehicle Form when he submits to the
Department the approved application form, (1) along with the State Police Vehicle
Inspection Report and a copy of the corresponding Police Tow Form, or, (2) when towed
from private property other documentary evidence of his right to the possession,
containing description of vehicle, date towed, location towed from, and person
authorizing the towing.
(k) Any wrecker owner who violates this Section shall, for the first offense, be
fined not less than $25 nor more than $50 for each vehicle violation. For each
subsequent like offense within one year he or she shall, be fined not less than $50 nor
more than $100 for each vehicle violation.
(1) Presumption of ownership - The last known registered owner of an abandoned
vehicle is considered to be the prima facie owner of the vehicle at the time it was
abandoned and the person who abandoned it."
Section 3. Amend §4414(a), Chapter 44, Title 21, Delaware Code by striking the phrase
or be imprisoned not less than 2 nor more than 10 days or both" as it appears at the end
of said Subsection.
Approved May 11, 1987.
CHAPTER 15
FORMERLY
HOUSE BILL NO. 22
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND AN ACT BEING CHAPTER 504, VOLUME 57, LAWS OF DELAWARE, AS AMENDED, ENTITLED
"AN ACT TO INCORPORATE THE TOWN OF HENLOPEN ACRES" TO PROVIDE FOR BORROWING AGAINST
ANTICIPATED REVENUES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all
members elected to each House thereof concurring therein):
Section 1. Amend Subsection (a) Section 26, Chapter 504, Volume 57, Laws of Delaware,
as amended, by adding at the end of said Subsection (a) a new paragraph to be designated
"Paragraph 28" to read as follows:
28. To borrow money in anticipation of revenues on the full faith and credit of
the Town of Henlopen Acres such sum or sums not exceeding Two Hundred Thousand Dollars
($200,000.00) in any one (1) year when, in the opinion of a majority of the
Commissioners of the Town of Henlopen Acres, the needs of the Town require it. Any sum
so borrowed shall be secured by a promissory note or notes of the Town of Henlopen
Acres, duly authorized by Resolution adopted by the Commissioners of the Town of
Henlopen Acres, and signed by the Mayor of the Town of Henlopen Acres and attested by
the Secretary of the Commissioners of the Town of Henlopen Acres with the corporate seal
affixed, and no officer nor member of the Commissioners shall be liable for the payment
or payments of such notes because it is signed by them as officers of the Town and is
authorized by the Resolution of the Commissioners; provided however, that the total sum
outstanding at any one time shall not exceed Two Hundred Thousand Dollars ($200,000.00);
and provided further, that any sum of money so borrowed, as aforesaid, in any fiscal
year shall be paid from the general fund of the Town and shall be completely repaid at
any time, but must be completely paid at the end of ten (10) fiscal years following the
first fiscal year when such sum or sums were borrowed, with interest thereon; and
provided further, that such aJ valorem taxes shall be levied as is necessary to pay the
principal of and interest on said indebtedness as is required without regard to any
other limitation concerning the maximum rate of taxation and such note or notes and the
interest thereon shall be exempt from all taxation by the State of Delaware or by any
political subdivision, agency or subdivision thereof."
Approved May 11, 1987.
CHAPTER 16
FORMERLY
HOUSE BILL NO. 36
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 17, TITLE 18 OF THE DELAWARE CODE TO REQUIRE AGENTS AND BROKERS TO
REPORT ANY VIOLATIONS OF DELAWARE INSURANCE LAWS BY INSURANCE COMPANIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 17, Title 18 of the Delaware Code by adding a new Section to
read as follows:
11739. Report of Violation to Commissioner Confidentiality of Report
Every insurer, agent, solicitor, broker, administrator or other person except
for attorneys functioning within the scope of the attorney-client privilege who has
knowledge of a violation of any provision of this Title shall promptly report the facts
and circumstances pertaining to the violation to the Commissioner.
If a person who submits information pursuant to subsection (a) of this section
requests, the Commissioner shall keep the person's name and the information
confidential."
Approved May 11, 1986.
25
26
CHAPTER 17
FORMERLY
HOUSE BILL NO. 47
AN ACT TO AMEND CHAPTER 7, TITLE 18 OF THE DELAWARE CODE TO REQUIRE INSURERS TO PAY PREMIUM
TAXES SEMI-ANNUALLY INSTEAD OF ANNUALLY AND TO APPROPRIATE FUNDS TO EMPLOY PERSONNEL TO
COLLECT THIS TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §702(a), Title 18 of the Delaware Code by deleting the words each
year" following the words "on or before March 1" and by adding the following in lieu
thereof:
"(for the period July 1 through December 31 immediately preceding) and on or before
September 1 (for the period January 1 through June 30 immediately preceding)".
Section 2. Amend §702, Title 18 of the Delaware Code by designating the present
subsection '(d)' as subsection '(e)'.
Section 3. Amend §702, Title 18 of the Delaware Code by adding a new subsection '(d)',
as follows:
'(d)' in Lieu of the semi-annual report of taxable gross direct premium income to
be filed on or before September 1 (for the period January 1 through June 30 immediately
proceeding) as required by subsection (a) above and the tax paid thereon as required by
subsection (c) above, each insurer may, at its option, file with the Commissioner, on or
before August 1 each year, a report showing the amount of taxes paid on March 1 for the
next preceding calendar year and pay to the Commissioner, for the use of the State, tax
in the amount of one-half the taxes shown thereon as estimated taxes due for the current
calendar year. Thereafter, the report due on March 1 of the next succeeding calendar
year shall be for the period January 1 through December 31, and the estimated tax
payment made on or before the immediately proceeding, shall be deducted from the tax due
on such net premiums."
Approved May 11, 1987.
CHAPTER 18
FORMERLY
HOUSE BILL NO. 73
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 24, CHAPTER 37, DELAWARE CODE RELATING TO THE BOARD OF EXAMINERS OF
SPEECH/LANGUAGE PATHOLOGISTS, AUDIOLOGISTS AND HEARING AID DISPENSERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §3707, Chapter 37, Title 24 of the Delaware Code, by adding thereto a
new subsection (d) to read as follows:
"(d) Upon payment of a non-refundable application fee, the Board shall waive the
examination and education and experience requirements and grant licenses to applicants
initially hired by agencies of the State between January 30, 1986 and September 30, 1986
for positions regulated by this Chapter; provided, however, that said applicants must
submit proof of successful completion of the qualifications for licensure as enumerated
in §3706 of this Chapter to the Board on or before June 30, 1989 in order to be eligible
for renewal of said license."
Approved May 11, 1987.
27
CHAPTER 19
FORMERLY
SENATE BILL NO. 27
AN ACT TO AMEND CHAPTER 42, VOLUME 53, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT
AMENDING, REVISING AND CONSOLIDATING THE CHARTER OF THE CITY OF SEAFORD".
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Twothirds of all
members elected to each House thereof concurring therein):
Section 1. Amend Section 2(H), Chapter 42, Volume 53, Laws of Delaware, as amended by
Chapter 90, Volume 56, Laws of Delaware, by deleting the last sentence in its entirety and
substituting in lieu thereof the following:
The polling places shall be opened from 2:00 p.m., prevailing time, until 6:00
p.m., prevailing time, on the date set for the special election."
Approved May 11, 1987.
CHAPTER 20
FORMERLY
SENATE BILL NO. 77
AN ACT TO AMEND CHAPTER 13, TITLE 18, DELAWARE CODE, TO PERMIT INSURERS TO INVEST IN BOND
OBLIGATIONS OF THE AFRICAN DEVELOPMENT BANK.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §1307, Chapter 13, Title 18, Delaware Code, by redesignating the
present subsection (11) as subsection (12) and inserting a new suhsection (11) to read as follows:
"(11) African Development Bank."
Approved May 11, 1987.
28
CHAPTER 21
FORMERLY
HOUSE BILL NO. 39
AS AMENDED BY HOUSE AMENDMENT NO. 2, HOUSE AMENDMENT NO. 1 TO HOUSE AMENDMENT NO. 2 AND
HOUSE AMENDMENTS NOS. 3, 4 AND 5
AN ACT TO AMEND SECTION 1921, TITLE 24 OF THE DELAWARE CODE RELATING TO EXCEPTIONS FROM THE
NURSING ACT.
WHEREAS, the present Nursing Act precludes the administration of medication in child day
care homes or child day care centers, permitting assistance only after completion of a
state-approved medication training program; and
WHEREAS, public policy calls for a further exception to the Act providing for
administration of medication with written parental permission.
NOW THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Subsection (a) (10), Section 1921, Title 24 of the Delaware Code by
striking therefrom the words "Child care homes or child day care centers or".
Section 2. Amend Section 1921 (a), Title 24 of the Delaware Code by redesignating
Subsections (11) and (12) as Subsections (12) and (13) and creating a new Subsection (11)
which shall read as follows;
"(11) Administration of prescription or non-prescription medications, other than
by injection, by child care providers, who have successfully completed a State approved
medication training program, to children in child day care homes or child day care
centers regulated by the State under Sections 341-344 Chapter 3, Title 31 of this Code
provided the medication and written permission for the administration of the particular
medication has been obtained from the child's parent or legal guardian and further
provided the medication is in its original container, properly labeled. Properly
labeled medication shall include instructions for administration of the medication;"
Approved May 14, 1987.
CHAPTER 22
FORMERLY
HOUSE BILL NO. 116
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO THE LENDING AND MORTGAGE BANKING
BUSINESS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Threefifths of all
members elected to each House thereof concurring therein):
Section 1. Amend Chapters 21, 30 and 31 of Title 5 of the Delaware Code by deleting said
Chapters and establishing a new Chapter 22 to read as follows:
"CHAPTER 22 LICENSED LENDERS
SUBCHAPTER I. LICENSING
§2201. Definitions.
In this chapter, unless the context otherwise requires:
'Licensed Lender is an individual, corporation, partnership or any other group of
individuals however organized, but does not include any banking institution, savings
bank, savings and loan association, federal credit union, insurance company, or any
other financial institutions which is subject to any other law of this State or the
United States, in the business of making closed end and open end loans pursuant to this
chapter. No licensed lender shall be a participating merchant as used in this Chapter.
'Person' means an individual, corporation, partnership or any other group of
individuals however organized, but does not include any banking institution, savings
bank, savings and loan association, federal credit union, insurance company, or any
other financial institution which is subject to any other law of this State of the
United States, regulating the power of such institution to engage in the business of
lending money as provided for in this chapter.
'Licensee' means any person duly licensed by the Commissioner pursuant to this
chapter.
'Commissioner' means the State Bank Commissioner.
'Payment Period' means the period of time scheduled by the terms of a loan to
elapse between the days upon which installment payments are required to be made on such
loan.
§2202. License required.
Every person or combination of persons (other than any national, or state bank, any
state or federal savings and loan association or savings bank or any trust company
organized under this Code or any other laws of this State), desiring to transact the
business of lending money as provided in this chapter shall apply to the State Bank
Commissioner for a license.
A person that makes or negotiates not more than 5 loans within any 12 month period
shall be deemed not to be transacting business as provided herein. Loans made by an
unlicensed lender shall fall under the provision of §2301 of Title 6, Delaware Code.
The Commissioner shall exempt from the licensing requirements of this chapter
subsidiaries of savings and loan associations insured by the Federal Savings and Loan
Insurance Corporation. The Commissioner shall be authorized to exempt from this section
such additional entities or classes of entitites as he shall find inappropriate to include
to effectuate the purpose of this chapter.
§2203. Rea '11'1 .1.
29
(1) Every application for a license shall be in writing in the form prescribed by the
Commissioner and shall contain the name and complete address or addresses where the
business of the applicant is located, and if the applicant be a partnership,
association, corporation or other form of business organization, the names and complete
addresses of each member, director and principal officer thereof. Such application
30 Chapter 22
shall also include a description of the activities of the applicant, in such detail and
for such periods, as the Commissioner may require, as well as such further information
as the Commissioner may require. Such applicant, at the time of making such
application, shall pay to the Commissioner as an investigation fee the sum of $250.00
which shall not be refundable.
(2) Upon approval, the applicant shall pay an annual license fee of $250.00 which
shall be payable annually thereafter. No abatement in the amount of said license fee
shall be made if the license is issued for less than I year, nor if the license is
surrendered, canceled or revoked prior to the expiration of the period for which such
license was issued. Every license shall expire on December 31 of each year.
§2204. Issuance of license.
Upon the filing of an application for a license, if the Commissioner shall find that
the financial responsibility, experience, character and general fitness of the applicant
and of the members thereof (if the applicant be a co-partnership or association) and of the
officers and directors thereof (if the applicant be a corporation) are such as to command
the confidence of the community and to warrant belief that the business will be operated
honestly, fairly and efficiently within the purpose of this chapter, he shall thereupon
Issue a license to transact business in accordance with this chapter. If the Commissioner
shall not so find, he shall not issue such license and he shall notify the applicant of the
denial, give notice of the grounds for refusal and notify the applicant of the right to
request a hearing. If the applicant requests a hearing the Commissioner shall hold such
hearing under Chapter 101 of Title 29. The Commissioner shall approve or deny every
application for license hereunder within 90 days from the filing thereof.
§2205. 1.1.. 1
In the event that there shall be any change among the Officers, Partners or Directors
of any licensee, the licensee shall forthwith notify the Commissioner of the name, address
and occupation of each new Officer, Partner or Director, and provide such other information
as the Commissioner may require.
§2206. License reauirements.
Each license issued under this chapter shall state the address at which the business is
to be conducted and shall state fully the name of the licensee, and the date and place of
its incorporation, if applicable. A copy of such license shall be prominently posted in
each place of business of the licensee. In case such location be changed, the Commissioner
shall endorse the change of location on the license without charge. In case there is a
change of name but no change in corporate structure, the Commissioner shall endorse such
name change on the license without charge. Such license shall not be otherwise
transferable or assignable. No licensee shall maintain an office at any other location
than that designated in the license. The Commissioner may issue more than one license to
the same applicant upon payment of the required fees and compliance with all applicable
provisions of law.
§2207. Renewal of license.
Every holder of a license or a renewal thereof, as provided for in this section,
desiring to continue the transaction of the business as provided for in this chapter, shall
at least 30 days prior to the expiration of such license or renewal thereof make
application to the Commissioner on forms to be provided by the Commissioner for a license
renewal. The Commissioner may mandate that applications for renewal shall be treated as
new applications if said renewal applications are not on file with the Office of the State
Bank Commissioner by January 1 of each year. Licensees who have not complied with
supervisory letters or who have not paid the supervisory assessment or examination fees may
be refused license renewal.
§2208. License bond.
Every licensee shall file with the Commissioner a corporate surety bond in the
principal sum of $50,000 in a form satisfactory to the Commissioner with surety provided by
a corporation authorized to transact business in this State. The bond shall run to the
State and shall be conditioned that the licensee will comply with this chapter. The
aggregate liability of the surety on the bond shall in no event exceed the amount of such
bond.
§2209. Suspension or revocation of license: surrender of license: procedure.
(a) The Commissioner may revoke any license issued hereunder if he shall find that:
Chapter 22 31
The licensee has violated any provisions of this chapter, or any rule or
regulation made by the Commissioner under and within the authority of this chapter
or of any other law, rule or regulation of this State.
Any fact or condition exists which, if it had existed at the time of the
original application for such license, would have warranted the Commissioner in
refusing originally to issue such license.
The licensee has engaged in business activities or practices in connection
with extensions of credit to consumers, which could be deemed unfair or deceptive
by nature or intent. Such activities and practices include, but are not limited
to, the use of tactics which mislead the consumer, misrepresent the consumer
transaction or any part thereof or otherwise create false expectations on the part
of the consumer.
The Commissioner may, on good cause shown, suspend any license for a period not
exceeding 30 days, pending investigation.
Except as provided in subsection (b) of this section, no license shall be revoked
or suspended except after notice and a hearing thereon.
Any licensee may surrender any license by delivering to the Commissioner written
notice that it thereby surrenders such license, but such surrender shall not affect
such licensee's civil or criminal liability for acts committed prior to such surrender.
No revocation, suspension or surrender of any license shall impair or affect the
obligation of any preexisting lawful contract between the licensee and any person.
Every license issued hereunder shall remain in force and effect until the same
shall have been surrendered, revoked or suspended in accordance with this chapter, but
the Commissioner shall have authority to reinstate a suspended license or to issue a
new license to a licensee whose license shall have been revoked if no fact or condition
then exists which would have warranted the Commissioner in refusing originally to issue
such license under this chapter.
Whenever the Commissioner shall revoke or suspend a license issued pursuant to
this chapter, he shall forthwith execute a written order to that effect. The
Commissioner shall forthwith serve the written order upon the licensee. Any such order
may be reviewed in the manner provided by Chapter 101 of Title 29. Such application
for review as authorized by this section must be made within 30 days from the date of
such order of suspension or revocation.
§2210. Supervision and examination of business by Commissioner.
Every person or combination of persons licensed to transact business as provided
in this chapter in the State shall be subject to the supervision and examination of the
State Bank Commissioner and shall be examined by the Commissioner or his authorized
representative annually or at such intervals as the Commissioner deems necessary.
On the occasion of every examination, the Commissioner or his authorized
representative shall be given access to every part of the office or place of business
visited and to the assets, securities, books and papers of the business.
The examination made by the Commissioner or his authorized representative shall be
a thorough examination into the affairs of the business visited, the resources and
liabilities, the investment of the funds, the mode of conducting the business and the
compliance or noncompliance with this Code and any other statutes of the State; and in
connection with such examination the Commissioner or his authorized representative may
examine, under oath or affirmation, any and all persons connected with or associated
with the licensee.
The Commissioner may prescribe regulations to carry out the purposes of this
chapter.
§2211. baintenance of books and records by licensee.
Every licensee shall maintain such books, accounts and records relating to all
transactions within this chapter as will enable the Commissioner to enforce full compliance
with the provisions of this chapter.
§2212. period of retention of records by ltcensee.
32 Chapter 22
All books, accounts and records of the licensee shall be preserved and kept available
as provided in this chapter for such period of time as the Commissioner may by regulation
require.
§2213. PrescriDtion of information to be shown in licensee book..
The Commissioner may prescribe the minimum information to be shown in such books,
accounts and records of the licensee so that such records will enable the Commissioner to
determine compliance with the provisions of this chapter.
SUBCHAPTER II. REVOLVING CREDIT
§2214. Definitions.
As used in this subchapter:
(a) "Revolving credit plan" or "plan" means a plan contemplating the extension of
credit under an account governed by an agreement between a licensee and a borrower
pursuant to which:
The licensee permits the borrower and, if the agreement governing the plan so
provides, persons acting on behalf of or with authorization from the borrower,
from time to time to make purchases from participating merchants and/or to obtain
loans by use of a credit device;
The amounts of such purchases from participating merchants and loans are
charged to the borrower's account under the revolving credit plan;
The borrower is required to pay the licensee the amounts of all purchases and
loans charged to such borrower's account under the plan but has the privilege of
paying such amounts outstanding from time to time in full or in installments; and
Interest may be charged and collected by the licensee from time to time on
the outstanding unpaid indebtedness under such plan.
(b) "Purchases" mean payments for property of whatever nature, real or personal,
tangible or intangible, and payments for services, licenses, taxes, official fees,
fines, private or governmental obligations, or any other thing of value.
(c) "Loan" means cash advances or loans to be paid to or for the account of the
borrower.
(d: "Credit device" means any card, check, identification code or other means of
identification contemplated by the agreement governing the plan.
(e) "Outstanding unpaid indebtedness" means on any day an amount not in excess of the
total amount of purchases from participating merchants and loans charged to the
borrower's account under the plan which is outstanding and unpaid at the end of the
day, after adding the aggregate amount of any new purchases from participating
merchants and loans charged to the account as of that day and deducting the aggregate
amount of any payments and credits applied to that indebtedness as of any day and, If
the agreement providing the plan so provides, may Include the amount of any interest
and additional charges, including late or delinquency charges, which have accrued to
the account and which are unpaid at the end of the day.
§2215. Extension Of CrediA.
Any licensee may offer and extend credit under a revolving credit plan to a borrower
and in connection therewith may charge and collect the interest and other charges permitted
by this subchapter and may take such security as collateral in connection therewith as may
be acceptable to the licensee. Without limitation of the foregoing, credit may be extended
under a revolving credit plan by a licensee's acquisition of obligations arising out of the
honoring by a merchant, a bank or other financial institution (whether chartered or
organized under the laws of this or any other state, the District of Columbia, the United
States or any district, territory or possession of the United States, or any foreign
country), or a government or governmental subdivision or agency of a credit device made
available to a borrower under a plan, whether directly or indirectly by means of telephone,
point of sale terminal, or other electronic or similar device or through the mail.
§2216. Interest.
A licensee may charge and collect interest under a revolving credit plan on outstanding
unpaid indebtedness in the borrower's account under the plan at such daily, weekly,
monthly, annual or other periodic percentage rate or rates as the agreement governing the
plan provides or as established in the manner provided in the agreement governing the
plan. If the applicable periodic percentage rate under the agreement governing the plan is
other than daily, interest may be calculated on an amount not in excess of the average of
outstanding unpaid indebtedness for the applicable billing period, determined by dividing
the total of the amounts of outstanding unpaid indebtedness for each day in the applicable
billing period by the number of days in the billing period. If the applicable periodic
percentage rate under the agreement governing the plan is monthly, a billing period shall
be deemed to be a month or monthly if the last day of each billing period is on the same
day of each month or does not vary by more than 4 days therefrom.
§2216. Variable rates.
If the agreement governing the revolving credit plan so provides, the periodic
percentage rate or rates of interest under such plan may vary in accordance with a schedule
or formula. Such periodic percentage rate or rates may vary from time to time as the rate
determined in accordance with such schedule or formula varies and such periodic percentage
rate or rates, as so varied, may be made applicable to all outstanding unpaid indebtedness
under the plan on or after the effective date of such variation including any such
indebtedness arising out of purchases made from a participating merchant or loans obtained
prior to such variation in the periodic percentage rate or rates.
§2218. Additional chargea.
In addition to or in lieu of interest at a periodic percentage rate or rates as
provided in §2216 and §2217 of this title, a licensee may, if the agreement governing the
revoTving credit plan so provides, charge and collect one or more of the following:
A daily, weekly, monthly, annual or other periodic charge in such amount or
amounts as the agreement may provide for the privileges made available to the borrower
under the plan;
A transaction charge or charges in such amount or amounts as the agreement may
provide for each separate purchase or loan under the plan;
A minimum charge for each daily, weekly, monthly, annual or other scheduled
billing period under the plan during any portion of which there is an outstanding
unpaid indebtedness under the plan;
Reasonable fees for services rendered or for reimbursement of expenses incurred in
good faith by the licensee or its agents in connection with such loan, including
without /imitation, commitment fees, official fees and taxes, premiums or other charges
for any guarantee or insurance protecting the licensee against the borrower's default
or other credit loss, or costs incurred by reason of examination of title, inspection,
recording and other formal acts necessary or appropriate to the security of the loan,
filing fees, attorney's fees and travel expenses; and
Such other charges as the Commissioner shall include in an itemized schedule of
the maximum amounts which may be charged to an applicant for an extension of credit for
costs, fees, services, points, premiums, and all other reasonable expenses which may be
incurred by such applicant in connection with the extension of credit. The maximum
amounts permitted by said schedule may vary with the amount of the extension of credit
and shall bear a reasonable relationship to such extensions of credit, the services
required and the complexity of the transaction. No licensee or any other person shall
demand, collect or receive from any borrower, directly or indirectly, any other
charges, or any greater amounts for any authorized charges, than those permitted by
said schedule or otherwise under this chapter.
§2219. Terms for indebtedness.
A licensee may, if the agreement governing a revolving credit plan so provides, impose
different terms (including, without limitation, the terms governing the periodic percentage
rate or rates used to calculate interest, the method of computing the outstanding unpaid
Indebtedness to which such rate or rates are applied, the amounts of other charges and the
applicable installment repayment schedule) in respect to indebtedness arising out of
purchases and indebtedness arising out of loans made under the plan.
§2220. Omitted installments.
Chapter 22 33
34 Chapter 22
A licensee may at any time and from time to time unilaterally extend to a borrower
under a revolving credit plan the option of omitting monthly installments.
'52221. Lalkna041.
A licensee may request but not require an individual borrower to be insured in
respect of a revolving credit plan under a life, health, accident, health and accident
or other credit or other permissible insurance policy, whether group or individual, and
in the event that an individual borrower's outstanding unpaid indebtedness under the
plan is secured by an interest in real or personal property, a licensee may require the
borrower to obtain insurance, from an insurer acceptable to the licensee, against loss
of or damage to such property, or against the liability arising out of the ownership or
use of the property and may finance the premiums for such insurance.
The offer and placement of insurance under this section shall be subject in all
respects to the applicable provisions of Title 18.
§2222. Delinauent installments.
If the agreement governing a revolving credit plan so provides, a licensee may impose a
late or delinquency charge upon such installment payments or portions thereof; provided,
however, that no more than one such late or delinquency charge may be imposed in respect of
any single such installment payment or portion thereof regardless of the period during
which it remains in default; and provided further, however, that for the purpose only of
the preceding provision all payments by the borrower shall be deemed to be applied to
satisfaction of installment payments in the order in which they become due.
§2223. Attorney's fees: costs.
In the event a borrower defaults under the terms of a plan and the licensee refers the
borrower's account to an attorney (not a regularly salaried employee of the licensee) for
collection, the licensee may, if the agreement governing the revolving credit plan so
provides, charge and collect from the borrower a reasonable attorney's fee and, in
addition, if the agreement governing the revolving credit plan so provides, the licensee
may recover from the borrower all court or other collection costs actually incurred by the
licensee in connection with a collection proceeding.
§2224. Amendment of_agreement.
A licensee may, if the agreement governing a revolving credit plan so provides, at
any time or from time to time amend the terms of such agreement (including, without
limitation, the terms governing the periodic percentage rate or rates used to calculate
interest, the method of computing the outstanding unpaid indebtedness to which such
rate or rates are applied, the amounts of other charges and the applicable installment
repayment schedule) in accordance with the further provisions of this section.
The licensee shall notify each affected borrower of the amendment in the manner
set forth in the agreement governing the plan and in compliance with the requirements
of the Truth-In-Lending Act (15 U.S.C. §1601 et seq.), and regulations promulgated
thereunder, as in effect from time to time, if applicable: provided, however, that if
such amendment has the effect of increasing the interest or other charges to be paid by
the borrower, the licensee shall mail or deliver to the borrower, at least 15 days
before the effective date of the amendment, a clear and conspicuous written notice
which shall describe the amendment and the existing term or terms of the agreement
affected by the amendment and the pertinent information contemplated by the following
provisions of this section. If the amendment has the effect of increasing the interest
or other charges to be paid by the borrower, such amendment shall become effective only
if the borrower uses the plan after a date specified in the notice which is at least 15
days after the giving of notice (but which need not be the date the amendment becomes
effective) by making a purchase or obtaining a loan, or if the borrower indicates to
the licensee in writing such borrower's express agreement to the amendment. Any such
amendment may become effective as to a particular borrower as of the first day of the
billing period during which such borrower so used such borrower's account or so
indicated agreement to the amendment. Any borrower who fails to use such borrower's
account or so to indicate agreement to an amendment shall be permitted to pay the
outstanding unpaid indebtedness in such borrower's account under the plan in accordance
with the terms of the agreement governing the plan without giving effect to the
amendment.
If the terms of the agreement governing the plan, as originally drawn or as
amended pursuant to this section, so provide, any amendment may, on and after the date
Chapter 22 35
upon which it becomes effective as to a particular borrower, apply to all then
outstanding unpaid indebtedness in the borrower's account under the plan, including any
such indebtedness which shall have arisen out of purchases made or loans obtained prior
to the effective date of the amendment.
(d) For the purposes of this section, a decrease in the required amount of periodic
Installment payments shall not be deemed an amendment which has the effect of
Increasing the interest to be paid by the borrower.
§2225. Application of other state laws.
Any other law of this State limiting the rate or amount of interest, discount, points,
finance charges, service charges or other charges which may be charged, taken, collected,
received or reserved shall not apply to extensions of credit under a revolving credit plan
operated in accordance with this subchapter.
§2226. Nonexclusivity: captions.
The provisions of this subchapter are not exclusive and a licensee may at its
option elect to extend credit either pursuant to this subchapter or as otherwise
permitted by applicable law.
Section headings and captions contained in this subchapter are inserted only as a
matter of convenience and for reference and do not, and shall not be construed to
define, limit, extend or describe the scope of this subchapter or the meaning or intent
of any section hereof.
SUBCHAPTER III CLOSED END CREDIT
§2227. Definitions.
As used in this subchapter:
"Closed end credit" means the extension of credit by a licensee to a borrower
pursuant to an arrangement or agreement which is not a revolving credit plan as defined
In subchapter II of this chapter.
"Loan" means any single extension of closed end credit.
§2228. Extension of credit.
Any licensee may, subject to any limitations on lending authority contained in its
charter or otherwise imposed by law and subject to the other provisions of this
subchapter, offer and extend closed end credit to a borrower and in connection
therewith, may charge and collect the interest and other charges permitted by this
subchapter and may take such security as collateral in connection therewith as may be
acceptable to the licensee. Loans to any one borrower may not exceed 201. of the paid
capital stock and surplus of such lender.
All licensees will maintain records or other comparable evidence of their activity
taken to reach a decision on a loan. If a commitment between a licensee and an
applicant is not met (regardless of whether a similar loan at a higher rate is closed
or not) and the delay is the licensee's fault, or the licensee cannot demonstrate
through its records or other comparable evidence that it took reasonably diligent steps
to meet its deadline, such action or inaction taken by the licensee may be deemed to be
an unsafe and unsound operating practice. In such a case, the Commissioner shall take
appropriate action which may include, but is not limited to, an order to refund certain
fees paid by the applicant to the licensee.
§2229. Interest.
A licensee may charge and collect interest in respect of a loan at such daily, weekly,
monthly, annual or other periodic percentage rate or rates as the agreement governing the
loan provides or as established in the manner provided in such agreement and may calculate
such Interest by way of simple Interest or such other method as the agreement governing the
loan provides. If the interest is precomputed it may be calculated on the assumption that
all scheduled payments will be made when due. For purposes hereof, a year may but need not
be a calendar year and may be such period of from 360 to 366 days, including or
disregarding leap year, as the licensee may determine.
§2230. Variable rates.
36 Chapter 22
If the agreement governing the loan so provides, the periodic percentage rate or rates
of interest charged and collected in respect of the loan may, if the interest is not
precomputed and taken in advance, vary in accordance with a schedule or formula. Such
periodic percentage rate or rates may vary from time to time as the rate determined in
accordance with such schedule or formula varies and such periodic percentage rate or rates,
as so varied. may be made applicable to any or all outstanding and unpaid amounts of such
loan on and after the effective date of such variation. This section shall not be
construed to limit the authority of a licensee to charge and collect interest in respect of
a loan in the manner and at the rate or rates authorized in any other section of this
subchapter.
§2231. Additional charges.
In addition to or in lieu of interest at a periodic percentage rate or rates permitted
by (§2229 and §2230 of this title), the licensee may charge and collect, in respect of a
loan:
Reasonable fees for services rendered or for reimbursement of expenses incurred in
good faith by the licensee or its agents in connection with such loan, including
without limitation, commitment fees, official fees and taxes, premiums or other charges
for any guarantee or insurance protecting the licensee against the borrower's default
or other credit loss, or costs incurred by reason of examination of title, inspection,
recording and other formal acts necessary or appropriate to the security of the loan,
filing fees, attorney's fees and travel expenses;
A delinquency charge upon any installment which is completely or partially in
default for a period of not less than 10 days; provided, however, that no more than one
such delinquency charge may be imposed in respect of any single such installment
payment or portion thereof regardless of the period during which it remains in default;
and provided further, that no such delinquency charge may exceed 51. of the amount of
any such installment of portion thereof in default;
Such other charges as the Commissioner shall include in an itemized schedule of
the maximum amounts which may be charged to an applicant for a loan for costs, fees,
services, points, premiums, and all other reasonable expenses which may be incurred by
such applicant in connection with a loan. The maximum amounts permitted by said
schedule may vary with the amount of the loan and shall bear a reasonable relationship
to such loan, the services required and the complexity of the transaction. No licensee
or any other person shall demand, collect or receive from any applicant for a loan,
directly or indirectly, any other charges, or any greater amounts for any authorized
charges, than those permitted by said schedule or this subchapter. Every licensee
shall furnish to every applicant for a loan a copy of said schedule at the time when
such application is made.
§2232. Werred installment3.
A licensee may at any time or from time to time permit a borrower to defer installment
payments of a loan and may, in connection with such deferral, charge and collect deferral
charges and may also require payment by such borrower of the additional cost to the
licensee of premiums for continuing in force, until the end of such period of deferral, any
insurance coverage provided in connection with the loan pursuant to 52231 of this title.
§2233. Ift55raDCV.
A licensee may request but not require borrower to be insured in respect of a loan
under a life, health, accident, health and accident or other permissible insurance
policy, whether group or individual, and in the event that a loan to a borrower is
secured by an interest in real or personal property, the licensee may require the
borrower to obtain insurance, from aft insurer acceptable to the licensee, against loss
of or damage to such property, or against the liability arising out of the ownership or
use of the property and may finance the premiums for such insurance.
The offer and placement of insurance under this section shall be subject in all
respects to the applicable provisions of Title 18.
§2234. Promment.
A borrower may prepay a loan in full at any time.
If interest charged pursuant to §2229 of this title in respect to a loan has been
precomputed and taken in advance, then, in the event of prepayment of the entire
Chapter 22 37
indebtedness, the licensee shall refund to such borrower the unearned portion of the
precomputed interest charge. This refund shall be in an amount not less than the
amount which would be refunded if the unearned precomputed interest charge were
calculated in accordance with the actuarial method, except that the borrower shall not
be entitled to a refund which is less than $5. The unearned portion of the precomputed
interest charge is, at the option of the licensee, either:
That portion of the precomputed interest charge which is allocable to all
originally scheduled or, if deferred, all deferred payment periods, or portions
thereof, ending subsequent to the date of prepayment. The unearned precomputed
interest charge is the total of that which would have been earned for each such
period, or portion thereof, had the loan not been precomputed, by applying to
unpaid balances of principal, according to the actuarial method, an annual
percentage rate based on the precomputed interest charges, assuming that all
payments were made as scheduled, or a deferred, if deferred. The licensee, at its
option, may round this annual percentage rate to the nearest one-quarter of 1
percent; or
The total precomputed interest charge less the earned precomputed interest
charge. The earned pracomputed interest charge shall be determined by applying an
annual percentage rate based on the total precomputed interest charge, under the
actuarial method, to the unpaid balances for the actual time those balances were
unpaid up to the date of prepayment.
(c) As used in subsection (b) of this section:
"Actuarial method" means the method of allocating payments made on a loan
between the outstanding balance of the loan and interest pursuant to which a
payment is applied first to the accumulated interest and any remainder is
subtracted from the outstanding balance of the loan.
"Precomputed interest charge" means interest as computed by the add-on,
discount or other similar method.
"Payment period" means the time period within which periodic installment
payments of a loan are due as provided in the agreement governing the loan.
(d) If a charge was made for premiums for insuring such borrower under an insurance
policy pursuant to §2233 of this title, then, in the event of prepayment, the licensee
shall refund to such borrower the excess of the charge to such borrower therefor over
the premiums paid or payable to the licensee, if such premiums were paid or payable to
the licensee periodically, or the refund for such insurance premium received or
receivable by the licensee, if such premium was paid or payable in a lump sum by the
licensee, provided that no such refund shall be required if it amounts to less than $5.
(e) In connection with any prepayment of any loan by an individual borrower, the
licensee may not impose any prepayment charge, except that in the case of a residential
mortgage loan, the lender may charge and collect any prepayment penalty or charge
specified in the agreement governing, or, the bond, note or other evidence of, the loan.
§2235. Refinancing.
A borrower may, with the consent of the licensee, refinance the entire outstanding
and unpaid amount of a loan, and the licensee may charge and collect a refinancing
charge in connection with any such refinancing.
For the purposes of this section, the entire outstanding and unpaid amount of a
loan shall be deemed to be:
If the interest and charges in respect of the loan were not taken in advance,
the total of the unpaid balance and the accrued and unpaid interest and charges on
the date of refinancing; or
If the interest and charges on the loan were precomputed and taken in
advance, the amount which the borrower would have been required to pay upon
prepayment on the date of refinancing pursuant to §2232 of this title governing
refund upon prepayment.
§2236. Attorneys fees' costl.
in the event a borrower defaults under the terms of a loan and the licensee refers such
borrower's account to an attorney (not a regularly salaried employee of the licensee) for
38 Chapter 22
collection, the licensee may, if the agreement governing the loan so provides, charge and
collect from the borrower a reasonable attorney's fee and, in addition, if the agreement
governing the loan so provides the licensee may recover from the borrower all court and
other collection costs actually incurred by the licensee in connection with a collection
proceeding.
§2237. Application of other state laws.
Any other law of this State limiting the rate or amount of interest, discount, points,
finance charges, service charges or other charges which may be charged, taken, collected,
received or reserved shall not apply to extensions of credit made in accordance with this
subchapter.
§2238. Nonexclusivitv: Captions.
The provisions of this subchapter are not exclusive and a licensee may at its
option elect to extend credit either pursuant to this subchapter or as otherwise
permitted by applicable law.
Section headings and captions contained in this subchapter are inserted only as a
matter of convenience and for reference and do not, and shall not be construed to
define, limit, extend or describe the scope of this subchapter or the meaning or intent
of any section hereof.
SUBCHAPTER IV. PROHIBIIIDNIAKILEERALIIIS
§2239. Penalty for failure to give cooy of obligation to borrower.
Every lender shall give to the borrower, on request, a correct copy of the obligation
evidencing the loan, and on failure or refusal, on such request, to furnish the borrower
with such copy, shall be fined, for each offense, not less than $20 nor more than $100, or
Imprisoned for not more than one month, or both.
§2240. Prohibition against making loans without License: exception: penalty.
Loans as authorized by this chapter shall not be made unless a license of
registration has first been obtained from the State Bank Commissioner. Whoever
violates this subsection shall be fined not less than $50 nor more than $200 for each
offense, or imprisoned not more than three months, or both.
Subsection (a) of this section shall not apply to state or federal savings and
loan associations or savings bank, national banks, or state banks or trust companies
organized under the laws of this State. Such institutions may make loans in accordance
with and at the rates and upon the terms, and under the limitations with respect to
corporations, provided for in this chapter, without first obtaining a license from the
State Bank Commissioner.
§2241. Bouonsibilitv of agents.
For every violation of this chapter by any association, firm, partnership, trustee
system or combination of persons not incorporated, or by any corporation, any member of the
association, firm, partnership. trustee system or combination of persons not incorporated,
and the president, secretary or treasurer, or any person acting as agent of the
association, firm, partnership, trustee system or combination of persons not incorporated,
or corporation, may be proceeded against as a principal, and if found guilty of violating
this chapter, shall be punished as provided in this chapter.
§2242. klay_orten_Karrants or assignments as security for loans, confessions of
'Judgment. . '1r I r v
No order, warrant or claim of any kind, from any employee upon his employer, for
any salary or part thereof due or to become due to such employee from such employer,
shall be taken, accepted, or agreed to be taken or accepted, as security for money
loaned or to be loaned.
No loan shall be declared due and payable unless the borrower shall be in default
of an expressed term or condition of the instrument.
Whoever violates this section shall be fined not less than $100 nor more than
MO, or imprisoned not more than six months, or both.
§2243. Ealig_ot_imilloading advertising Prohibited.
Chapter 22 39
It shall be unlawful for any person to cause to be placed before the public in this
State, directly or indirectly, any false or misleading advertising matter pertaining to
loans under this chapter or the availability thereof; provided, however, that this section
shall not apply to the owner, publisher, operator or employees of any publication or radio
or television station which disseminates such advertising matter without knowledge of the
false or misleading character thereof."
§2244. JurisdictistEL
The Superior Court shall have jurisdiction of violations of Sections 2339, 2240 and
2242 of this Chapter.
Section 2. Amend §121 of Title 5 of the Delaware Code by deleting the term "Chapter 21" as it appears in paragraph (a) (2) of said section and inserting in lieu thereof "Chapter 22".
Section 3. Further amend §121 of Title 5 of the Delaware Code by deleting paragraph (e) of
said section.
Section 4. If any provision of this Act or the application thereof to any person or
circumstance is held invalid it shall not effect without the invalid provision or
application, and to that end the provisions of this Act are declared severable.
Section 5. This Act shall be effective July 1, 1987. Licenses currently in effect under
former Chapters 21, 30 and 31 in effect upon the effective date of this Act shall continue
in effect until December 31, 1987.
Approved May 18, 1987.
40
CHAPTER 23
FORMERLY
HOUSE BILL NO. 117
AN ACT TO AMEND CHAPTER 11, TITLE 5 OF THE DELAWARE CODE BY PROVIDING FOR THE FILING OF
ESTIMATED BANK FRANCHISE TAX AND PAYMENT IN QUARTERLY INSTALLMENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all
members elected to each House thereof concurring therein):
Section 1. Amend §1101, Title 5, Delaware Code, by deleting subsections (a) and (e) in
their entirety and redesignating subsections (b). (c), (d), (f), and (g) as subsections
(a), (b), (c), (d), and (e) respectively.
Section 2. Amend the new subsection (a) by striking the portion of the first sentence
starting with the words "In lieu of" and ending with "December 31, 1982,". Further amend
the first sentence of said subsection by inserting the word "hereby" between the words "is"
and "imposed".
Section 3. Amend subsection (b) of §1103 of Title 5, Delaware Code, by striking the
period after "national bank." and adding the following language, "less any payments having
been received in accordance with §1104 of this Chapter."
Section 4. Amend §1104, Title 5, Delaware Code, by designating the existing language as
subsection (a). Further amend said section by striking all subsequent language following
the phrase "by the State Bank Commissioner", replacing the comma after said phrase with a
period and adding the following:
"Except that with respect to a bank, trust company and national bank whose
franchise tax liability for the current year is estimated to exceed $10,000 a tentative
return covering estimated bank franchise tax liability for the current income year, to
be in such form and containing such information as the State Bank Commissioner shall
prescribe, shall be filed with the State Bank Commissioner on or before the first day of
August of the current income year."
Section 5. Further amend §1104, Title 5, Delaware Code by adding subsections (b) and
(c) to read as follows:
"(b) The estimated tax liability as calculated per §1104 (a) shall be due and
payable in installments of 25% of the estimated tax liability on September 1 and
December 1 of the current taxable year with 25% to be paid on March 1 and the balance on
June 1 of the succeeding year.
(c) Underpayment of estimated tax. - (1) Addition to Tax. - In the case of any
underpayment of estimated tax or installment of estimated tax required by this Chapter,
there shall be added to the tax for the taxable year an amount determined at the rate of
17. per month, or fraction thereof, upon the amount of underpayment for the period of the
underpayment.
(2) Amount of Underpayment - For purposes of paragraph (1) of this subsection,
the amount of the underpayment shall be the excess of:
The amount of the estimated tax or installment payment which would be
required to be made if the estimated tax were equal to 80 percent of the tax
shown on the final return for the taxable year, or if no return was filed, 80
percent of the tax for such year, over
The amount, if any, of the estimated tax or the installment paid on or
before the last date prescribed for payment.
(3) Period of Underpayment - The period of the underpayment shall run from the
date the estimated tax or installment was required to be paid to the date of the
final payment of tax for the year.
(4) Exception - Notwithstanding the foregoing provisions of this subsection,
the addition to the tax with respect to any underpayment of estimated tax or any
installment shall not be imposed if the total amount of all payments of estimated
tax made on or before the last date prescribed for the payment thereof equals or
exceeds the amount which would have been required to be paid on or before such date
Chapter 23 41
if the estimated tax were the tax shown on the final return of the bank, trust
company and national bank for the preceding taxable year."
Section 6. If any provision of the act or the application thereof to any person or
circumstance is held invalid it shall not affect other provisions or applications of this
act that can be given effect without the invalid provision or application, and to that end
the provisions of this act are declared severable.
Section 7. This Act shall be effective July 1, 1987.
Approved May 18, 1987.
4 2
CHAPTER 24
FORMERLY
SENATE BILL NO. 109
AS AMENDED BY SENATE AMENDMENT NOS. 1 AND 2
AN ACT TO AMEND CHAPTER 1, TITLE 5, DELAWARE CODE, TO PROVIDE FOR THE PRIOR APPROVAL BY THE
DELAWARE BANK COMMISSIONER OF THE CHANGE IN CONTROL OF DELAWARE CHARTERED BANKS AND
TRUST COMPANIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 1, Title 5, Delaware Code by adding a new Subchapter III
entitled "Change in Bank Control", which said Subchapter III shall read as follows:
"Subchapter III. Change in Bank Control
§160. Prior Permission Reouired
No person, acting directly or indirectly or through or in concert with one or
more other persons, shall acquire control of any Delaware Chartered Bank or Trust
Company through a purchase, assignment, transfer, pledge, or other disposition of voting
stock of such Bank or Trust Company unless the State Bank Commissioner has been given at
least 60 days prior written notice of such proposed acquisition and within that time
period the Commissioner has not issued a notice disapproving the proposed acquisition or
extending for up to another 30 days, the period during which such approval may issue.
The period for disapproval may be further extended only if the Commissioner determines
that any acquiring party has not furnished all the information required or that in his
judgment any material information submitted is substantially inadequate. An acquisition
may be made prior to the expiration of the disapproval period if the Commissioner issues
written notice of his intent not to disapprove the action.
Notwithstanding any other provision of Title 5, a person acting directly or
indirectly or through or in concert with one or more other persons, may acquire control
or acquire all or substantially all of the assets of a banking organization that is not
a bank as defined in the Bank Holding Company Act of 1956 as amended (12 U.S.C. 1841 et
seq.), subject to the provisions contained herein; provided, however, that the
Commissioner's approval or disapproval of such acquisition is not required if the
Commissioner has prior to the enactment date of this Subchapter, recommended to the
appropriate Federal banking agency having jurisdiction over the person seeking to
acquire such banking organization not to disapprove such acquisition.
Notwithstanding any other provision of Title 5, and subject to the provisions
contained herein, an out-of-state bank holding company may acquire and retain an
existing bank satisfying the conditions of Subchapter 1 of Chapter 8 of Title 5 and
except for the requirement that such bank be a newly established bank, all other
provisions of Subchapter 1 of Chapter 8 of Title 5 will be applicable to such
out-of-state bank holding company and the bank so acquired.
Any person filing a notice shall publish in a local newspaper of general
circulation an announcement of the Commissioner's acceptance of the sufficiency of the
Notice.
Cgalent of Noliss
Except as otherwise provided by regulation of the Commissioner, a change of control
notice filed under this Subchapter shall contain at least the following information:
The identity, personal history, business background and experience of each
person by whom or on whose behalf the acquisition is to be made, including his
material business activities and affiliations during the past 5 years, and a
description of any material pending legal or administrative proceedings in which he
is a party and any criminal indictment or conviction of such person by a State or
Federal Court.
A statement of the assets and liabilities of each person by whom or on
whose behalf the acquisition is to be made, as of the end of the fiscal year for
each of the 5 years immediately proceeding the date of the notice, together with
related statements of income and source and application of funds for each of the 5
Chapter 24
43
fiscal years must be included, afl prepared in accordance with general accepted
accounting principles consistently applied, and an interim statement of the assets
and liabilities for each such person together with related statements of income,
source and application of funds, as of a date not more than 90 days prior to the
date of filing of the notice.
The te

LAWS
OF THE
STATE OF DELAWARE
ONE HUNDRED AND THIRTY- FOURTH
GENERAL ASSEMBLY
FIRST SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 13, A. D.
1987
SECOND SESSION COMMENCED AND HELD AT DOVER
On Tuesday, January 12, A. D.
1988
VOLUME LXVI